Crabtree Inc If Total Fixed Costs Are $36 000,how Many Total Units

question 85

Multiple Choice

Crabtree Inc.produces two types of products - Gizmos and Gadgets.The following information is available related to each product:
$\begin{array}{lrrr}& \underline{\text { Gizmos } }&\underline{ \text { Gadgets }} \\\text { Sales price per unit } & \$ 48 & \$ 60 \\\text { Variable costs per unit } & 21 & 24 \\\\\text { Percentage of total sales } & 66.67 \% & 33.33 \%\end{array}$
If total fixed costs are $36 000,how many total units need to be sold in order for the company to break even? (round computations to nearest hundredth)

• A) 581
• B) 1162
• C) 1200
• D) 405

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Definitions:

Professional Nursing

The practice of providing care for the sick and infirm, characterized by specialized education, knowledge, competence, and ethics.

Aristotle

An ancient Greek philosopher and polymath whose works spanning politics, metaphysics, ethics, and logic are foundational to Western philosophy.

Scientific Reasoning

The methodological approach to problem-solving and understanding natural phenomena through hypothesis formation, experimental design, data analysis, and logical argumentation.

Hypothesis Testing

A statistical method used to determine if there is enough evidence in a sample of data to infer that a certain condition is true for the entire population.